San Leon Energy announces interim results
San Leon Energy, the independent oil and gas production, development and exploration company focused on Nigeria, has announced its unaudited interim results for the six months ended 30 June 2020, and provided an update on its indirect interest in OML 18, a world-class oil and gas block located onshore in Nigeria.
- Completed the return of approximately US$35.3 million to shareholders during the first half of 2020 delivering on the Company’s commitment to shareholder returns.
- Oisin Fanning, CEO, purchased 98 million shares in the Company, taking his interest to approx. 24%, on 7 May 2020.
- Adekolapo Ademola joined the Company as Non-Executive Director on 7 April 2020 as a designate of Midwestern Oil & Gas Company Ltd. Bill Higgs and Mark Phillips resigned as Non-Executive Directors in May and June 2020 respectively.
- The Company entered into an agreement dated 6 April 2020 amending the existing Loan Notes Instrument between San Leon and Midwestern Leon Petroleum Limited (‘MLPL’). Under the terms of the Amendment, US$40.0 million was received immediately by San Leon, with the remaining balance payable being approx. US$82.2 million plus interest. A further US$10.0 million is expected to be settled on or before 6 October 2020, with the balance of the Loan Notes receivable to be paid in three quarterly instalments, commencing July 2021 and completing by December 2021.
Corporate – Post balance sheet
- On 3 August 2020 the Company provided a US$15.0 million loan and acquired a 10% interest in Energy Link Infrastructure (Malta) (‘ELI’). ELI’s sole asset is the proposed new Alternative Crude Oil Evacuation System (‘ACOES’) constructed to provide a dedicated oil export route from the OML 18 asset. Once commissioned, the system is expected by Eroton to reduce the downtime and allocated pipeline losses to below 10%.
- On 1 September 2020, the Company announced that it had conditionally agreed to invest US$7.5 million by way of a loan to Decklar Petroleum, who is the holder of a Risk Service Agreement (‘RSA’) with Millenium Oil and Gas Company on the Oza field, onshore Nigeria. Under the agreements, once completed, the Company will also receive a 15% interest in Decklar for a nominal amount paid.
- Allenby Capital Limited was appointed as Nominated Adviser and Joint Broker on 31 July 2020, after the reporting period.
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